All ten economic sectors ended higher led by financial sector
US stocks ended substantially higher at Wall Street on Thursday, 10 October 2013. Stocks soared on Thursday, with the Dow Jones Industrial Average notching its best one-day point gain since December 2011, after House Republican leaders proposed a temporary extension of the nation's debt ceiling. The Dow closed above 15,000 for the first time in four days.
The Dow Jones Industrial Average climbed 323.09 points, or 2.2%, to 15,126.07. The S&P 500 index advanced 36.16 points, or 2.2%, to 1,692.56. The Nasdaq Composite gained 82.97 points, or 2.3%, to 3,760.75.
All ten economic sectors ended higher led by financial sector. The aerospace manufacturer Boeing paced gains that included all of its 30 components.
Equities registered the bulk of their gains at the open amid indications the budget stalemate may be getting a bit closer to a resolution. Participants rushed into equities after House Republicans proposed extending the debt limit by six weeks in order to allow for a broader discussion on spending. Currently, the Republican plan does not call for ending the partial government shutdown, which was met with an initial pushback from the White House. However, subsequent reports from the White House suggested President Obama 'may' consider the short-term proposal.
There was a general risk-on attitude in the marketplace on Thursday as there is some movement from House Republicans on extending the U.S. debt ceiling limit. President Obama was meeting with House GOP leaders. The overall U.S. budget/ debt ceiling debacle is far from being completely solved, however.
The G-20 finance ministers and central bankers meeting gets under way on Thursday in Washington. World finance and central bank officials are saying the U.S. debt/budget fiasco will begin to hurt world economies if U.S. lawmakers to reach agreement on the matter soon.
U.S. economic data released Thursday included the weekly jobless claims report, which showed a rise in claims. However, the data was skewed by recent reports not including all 50 U.S. states. the U.S. Labor Department said initial weekly jobless claims jumped to a six-month high of 374,000, worse than forecasts for 312,000. The jump was attributed to application-processing issues in California and government shutdown-related layoffs. Gold turned slightly positive after the claims data, but then dipped back into negative territory.
Among major stocks under focus, notable gainers included shares of electronics-retailer Best Buy, up 7.6%. Citrix Systems led S&P 500 decliners, off almost 12% after the cloud-computing company late Wednesday warned its third-quarter revenue and profit would come in below expectations.
Bullion metal prices ended mixed on Wednesday, 09 October 2013 at Comex. Gold prices ended the U.S. day session lower with a proposed plan to temporarily raise the U.S. debt ceiling helping to fuel a rally in U.S. equities and draw investors away from the precious metal. Silver ended marginally higher.
December gold ended lower by $10.3 (0.8%) at $1296.9 per ounce on Wednesday. December silver ended higher by half a cent or 0.3% of $21.9 per ounce.
Crude-oil prices ended higher on Thursday, 10 October 2013 at Nymex. Crude-oil futures settled higher after the Organization of the Petroleum Exporting Countries reported a drop in its September output and as the kidnapping of Libya's prime minister renewed concerns over oil supplies from the Middle East and North Africa.
November crude oil rose $1.4, or 1.4%, to settle at $103.01 a barrel on the New York Mercantile Exchange.
OPEC reported that its total crude production in September averaged 30.05 million barrels per day, representing a drop of 390,000 barrels per day from the previous month.
OPEC also cut its forecast for U.S. economic growth to 1.6% from 1.7% and left its 2014 forecast unchanged at 2.5%. World oil demand was forecast to average 89.7 million barrels per day this year, representing growth of 800,000 barrels per day compared to last year. That estimate was unchanged from OPEC's previous report.
For every share falling, six gained on the New York Stock Exchange, where 738 million shares traded. Composite volume neared 3.4 billion.
Indian ADRs ended higher on Thursday. In the IT space, Infosys was up 1.2% and Wipro was up 3.6%. In the Banking space, HDFC Bank was up 1.8% and ICICI Bank was up 4.4%. In other space, Tata Motors was up 5.7% and Dr Reddys was up 2.7%.
Tomorrow, the preliminary October Michigan Consumer Sentiment Survey will be released at 9:55 ET.
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